Economic situation

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Right now the most critically affected is the tourism industry, which covers travel companies, accommodation, catering, conferences, seminars and events. The next worst hit is transport, and problems will come after some delay to industry and services. In effect the entire private sector will be affected by the situation.

The main problems for companies are:

  • Liquidity problems from loan liabilities and overdrafts
  • Staff remaining at home, especially in jobs where remote working is not possible, and the question of who should pay them
  • Compulsory leave as an alternative to redundancies or part-time working
  • Inflexible approaches in projects that receive subsidies, as problems may appear later because of EU rules
  • A negative shock to demand, which is already widely evident

Last updated: 31.08.2020 16:46

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The restrictions on economic activity and movement associated with preventing the spread of coronavirus seriously undermine the functioning of our labour market and business. As the causes of the crisis are not related to the Estonian economy, the Government is obliged to do its utmost to mitigate the impact of the crisis on both businesses and households. The further development of economic conditions is unclear, and it is important to monitor the progress of measures to those in need. If the crisis lasts longer than expected, the country must be prepared to consider additional aid measures. Therefore, it is still early to talk about the final amounts of the financial costs of exiting from the crisis.

The impact of crisis mitigation measures in the additional budget adopted by the Parliament for 2020 on the budgetary position of the government sector is EUR 1.15 billion this year. As a result of the crisis, lower tax revenues, financing transactions and the use of reserves will increase the negative cash flow of the Treasury to EUR 3.8 billion this year. To cover the negative cash flow, the Treasury will borrow and issue bonds of EUR 3.5 billion. As a result, the government debt burden is prognosed to rise to around 22% of Estonia's gross domestic product (GDP) by the end of the year. The overview of current economic indicators may be followed via fin.ee/koroonakriis

Last updated: 08.09.2020 17:00

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Supplementary amended budget includes an aid package to construction companies so that they would survive during the recession. The construction industry will get 145 million Euros to help them maintain stability on the market.

The role of the state as a contracting entity on the market will be increased already this year but the main payments to companies will be made over the following years.

As it is very difficult to accelerate the process when it comes to large infrastructure projects, it is most important to begin with the sites that have already in development.

  • Thus, 100 million Euros of the money directed toward the construction industry has been planned as co-financing for building and reconstructing apartment buildings and small residential buildings.

  • Local municipalities will get 30 million Euros for road construction and the Estonian Transport Administration (as of January 1, 2021 the Estonian Maritime Administration, the Estonian Civil Aviation Authority, and the Road Administration merged as the Estonian Transport Administration) will get 10 million Euros.

  • 5 million Euros was earmarked for the budget for demolition of abandoned buildings, to increase the budget for demolition support in the already existing building fund of KredEx will increase by that sum.

Last updated: 05.01.2021 15:39

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  • In order to mitigate the financial situation of companies, the Tax and Customs Board will suspend the calculation of interest on the corporate tax arrears during the emergency situation. Interest exemption will apply retroactively from March 1 until May 18.

  • As of May 18, the interest rate will be reduced from the current 0.06 per cent to 0.03 per cent. Going forward, the Tax and Customs Board may reduce the interest rate by 50 to 100 per cent.

  • The state is going to cover the first quarter advance social tax payments for self-employed persons to help them overcome the economic difficulties caused by the crisis. The state will transfer the first quarter advance payment of the social tax to the self-employed person's advance payment account at the Tax and Customs Board. If the self-employed person has already made the advance payment, they can use this amount to cover any current or future tax liability, as well as request the payment of these funds to their bank account.

  • If the entrepreneur wishes to participate in public procurements, apply for grants or permits from the state or local municipality, it is definitely necessary to organize the payment of arrears in instalments. The payment of tax arrears in instalments is also necessary for applying to several state support measures.

  • The payment of tax arrears in instalments is important even when the difficulties are long-term.

  • All tax returns must be correctly completed and submitted in due time so that the state can assess the real situation of companies and make the right decisions to help them.

Last updated: 14.05.2020 20:12

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Tax and Customs Board service bureaus were reopened on May 18. To protect the health of the customers and the customer service officials, the 2+2 rule is in force in the service bureaus and the waiting rooms of the service bureaus will remain closed. Income tax returns of natural persons will be accepted both electronically and on paper until June 30.

  • The Tax and Customs Board opened a website that gathers together tax information regarding the emergency situation at https://www.emta.ee/eng/etcbs-information-emergency-situation, where companies will find answers to frequently asked questions and current news about the changes. Information on the website is being constantly updated.

  • In Russian, the answers to frequently asked questions can be found at https://www.emta.ee/ru/chrezvychaynaya-situacya.

  • For further questions, we ask the entrepreneurs to contact the e-mail address ariklient@emta.ee or to call 880 0812. The Tax and Customs Board responds to the e-mails within five working days, if your question in more urgent, you should preferably try reaching us on the phone.

  • Customs information can be obtained from tolliinfo@emta.ee or call: 880 0814

  • For technical issues and instructions regarding e-MTA, please contact e-maks@emta.ee or call 880 0815.

  • Questions from private customers will be answered by eraklient@emta.ee and by phone 880 0811.

Last updated: 24.05.2020 16:43

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More information about the coronavirus and restrictions related to it is available calling 1247 (from abroad +372 600 1247).